At first glance, Ford's manual-only move seems like folly. But it might just work. Here's why:

Ford Is Selling Automatics, Too

The Fiesta is an important product for Ford, one it hopes will take a big share of the subcompact segment. The 1.0-liter is only one version; the 1.6-liter will come as both a manual and an automatic. "We haven't gone completely crazy," a Ford rep said.

The automaker would not provide sales projections for the 1.0-liter, but a representative told us, "we will build as many as we can sell." It is a safe bet it will produce a conservative number, so it won't get killed if they don't sell.

It Fits The Marketing Plan

Presenting the 1.0-liter, Ford hammered on two themes: performance and fuel economy. While it can be annoying in traffic, driving a stick shift is a lot of fun on winding and hilly roads. That's why Ford sent us through the canyons around Los Angeles for a test run. The manual transmission offers more control over the car, and demands participation: Driving becomes more of a sport and less of an everyday task.

Manual transmissions are also more fuel-efficient (though as car technology advances, they are losing their edge). Ford is working not only to meet high fuel economy standards, but to win over customers with high MPG numbers. There's no hybrid Fiesta, but Ford says the upcoming 1.0-liter will be the most efficient non-hybrid for sale in North America.

Americans Are Rediscovering Manuals

As noted, only 3.9 percent of cars sold in the US last year had manual transmissions. But through July of 2012, that number nearly doubled, jumping to 7 percent. The long-term trend toward automatics will not reverse in the long run, but for the moment, this shift offers Ford an opportunity jump in and sell some Fiestas.

Fiesta Buyers Want To Drive Stick

To justify the decision, Ford told us that about one out of every four Fiesta buyers opt for manual transmissions. If that number holds in 2013, similar shoppers can gobble up the 1.0-liters, while automatic drivers stick to the 1.6-liter.

It's Cheaper

Ford is already selling the 1.0-liter abroad (in fact, we drove European spec Fiestas in Los Angeles). Building an automatic version of the 1.0-liter engine requires a lot of work, and a lot of money. If Ford can find a market to buy the manuals it has already developed, it will save the extra costs.

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Flashback to the original Fiesta of 1978 (U.S. model. It went on sale two years earlier in Europa). There was no automatic offered in any Fiesta ever sold during the car's run in the states. That severely limited its appeal and ensured that it would be a niche product here.When the flaccid,mushy and mediocore Escort replaced the Fiesta for 1981,it had an autobox and sold millions.
The main issue with the automatic in a smaller engine is performance.The autobox saps usable power (although this has been addressed quite effectively in the last few years),but a three pot needs all of the help it can get (even with a turbo).
Bring it on. Thanks, Ford.